How to Harmonize Holiday Fun and Year-End Finances
The chill of November signals more than just the arrival of winter. For us at Lighthouse Advisory, it’s also the trumpet’s call announcing tax preparation season. The buzz and the whir of the holiday season, while magical, can often sweep small business owners off their feet, leaving little time for the crucial year-end financial groundwork. Today, we want to turn the spotlight on the important ways you can begin preparing for tax season right from November, and help you balance the hustle of the holiday season with this essential business task.
This resource is for educational purposes only. Make sure to speak with your tax professional for specific guidance when it comes to filing taxes. As state tax laws, federal tax laws, and the small business deductions change, it’s critical that a professional with a solid understanding of the current tax law assist you with filing your taxes.
START EARLY AND STAY ORGANIZED
As a small business owner, the year-end probably brings visions of overflowing inboxes and endless tasks to mind. This is where getting a jump start in November is beneficial—it allows you a head-start, easing the pressure when Tax Day looms.
Start your preparation by systematically organizing your financial documents. Collection of your receipts, invoices, payroll data, and deductible expenses need not be a complicated process. A structured approach to gathering and categorizing these documents can help streamline your tax filing process.
Don't forget, tax organization isn’t simply an administrative task - it’s the doorway to realizing potential tax savings. By starting now in November, you align your business processes for smoother sailing when tax season arrives.
BALANCE WORK WITH FESTIVITY
Yes, November can mark the beginning of tax preparation and completing other year-end financial tasks, but we know it also heralds in the holiday season; a time for joy, togetherness, and well, quite a bit of business chaos! We don't want you to let tax preparations steal your festive cheer.
Here are a few tips we love for striking a balance between festivity and finances:
1. Schedule dedicated, manageable chunks of time for tax work every week. This way, your workload becomes less daunting, leaving you with ample time to ride the waves of the holiday season. Whether it's securing fresh Christmas stock for your store or planning a year-end celebration for your clientele, by balancing your time, you can enjoy the season while also keeping on top of your tax obligations.
2. Utilize digital tools to automate the process. There are numerous cloud-based software options that can simplify tax management. By automating receipts tracking and other tax-related tasks, you'll find you have more time for sipping hot cocoa and wrapping gifts!
3. Carry forward the holiday spirit to tax work. Sure, taxes can be less than thrilling, but why not make it enjoyable? Organize your tax preparation days as festive occasions. A well-lit room, your favorite holiday tunes, and a warm glass of mulled wine can transform your tax work into a cheer-filled experience.
4. Consider outsourcing tax-related tasks. You've built a successful business around your area of expertise, but accounting might not be it — and that's okay. Engaging with a professional financial advisor, like us at Lighthouse Advisory, can help you effectively manage tax preparation while you focus on your business and, more importantly, on enjoying the festive joys!
5. Prepare a tax checklist. Create a comprehensive list of all tax-related tasks and stick it on a whiteboard or your office wall. Having a visible reminder helps in systematic task completion so you don't miss out on anything significant while you're caught up in the rush of holiday orders and celebrations. We’ve previous shared our Tax Prep Checklist that might make this even easier.
In the warm spirit of the holiday season, let's turn tax preparation from a daunting task into an organized and festive journey. At Lighthouse Advisory, we're not just financial advisors - we're your partners, cheering you on every step of the way, making sure you stride into the new year with a successful, tax-optimized business and the joyous memories of a well-spent holiday season.
LOOK TOWARDS A BRIGHT NEW YEAR
Navigating the sea of tax obligations as a small business owner can feel daunting. Believe me, we understand. Taxes are complex and it's okay to ask for help. As passionate supporters of small businesses, we at Lighthouse Advisory are always ready to shed light on your tax planning and make the journey less overwhelming.
So why wait? Your journey towards a streamlined business and optimized taxes is just a click away. Schedule your introductory consult with Lighthouse Advisory today. Here's to celebrating your accomplishments and to charting a course for even greater ones in the bright New Year!
